Communities facing environmental health threats can experience contention when residents have conflicting interpretations of risks; yet little is known about the social–psychological processes that contribute to divergent risk perceptions in these cases. Drawing on previous work on environmental contamination, contested illness, and literature on risk perceptions, we offer a framework for analyzing how residents assess potential environmental risks. Using the case of The Acreage, Florida, we examine a community where a cancer cluster has been established, but an environmental cause has not been determined. Specifically, we ask how residents individually assess risks concerning possible environmental contamination in cases of contested illness. Data come from 57 in‐depth interviews conducted with current and former residents of The Acreage. We argue that residents utilized particular cognitive heuristics to develop understandings and assessments of the situation. However, when these assessments contradicted those of other residents, community conflict emerged. We conclude by discussing how the framework utilized in our analysis can be applied in future research of contaminated communities.